EU Approves €23 Billion for Spain to Accelerate Renewable Energy and Public Transport Reforms

The European Commission has formally approved a fresh €23 billion payment to Spain under the NextGenerationEU recovery plan, earmarked to support major reforms in renewable energy, electric grid upgrades, and sustainable public transport across the country.

This latest tranche of funding brings Spain’s total disbursed share to nearly €100 billion, making it one of the largest national recipients of EU post-pandemic recovery funds. The money is tied to detailed targets aimed at reducing emissions, modernising infrastructure, and aligning with the bloc’s climate neutrality goals for 2050.

Among the core priorities outlined in Spain’s updated recovery plan are:

• Expanding solar and wind power capacity across the mainland and islands
• Upgrading the national electric grid to handle higher renewable inputs and increase energy storage
• Investing in low-emission buses, metro expansions, and cycling infrastructure in major cities
• Supporting clean technology start-ups and green industrial innovation hubs

The reforms also place a strong emphasis on social equity, with dedicated measures to ensure that low-income communities benefit from cleaner air, affordable energy, and better transport options.

EU Commission President Ursula von der Leyen praised Spain’s revised plan, calling it “a robust example of how European recovery funding can drive real environmental and social progress.”

Spain’s government has stated that part of the funding will go towards local initiatives in regions such as Valencia, Andalusia, and Basque Country, where projects to electrify railways, install solar farms, and decarbonise housing are already under way.

In return for the funds, Spain has committed to a series of policy reforms, including streamlining renewable energy permitting, introducing green procurement standards for public works, and improving long-term urban mobility planning.

Monitoring and reporting mechanisms have been strengthened to ensure transparency, with Spain submitting regular progress updates to Brussels. Independent auditors will verify that the spending meets the agreed benchmarks.

This wave of funding forms part of a wider EU effort to make the recovery from COVID-19 a “green transformation”, rather than a return to previous economic models.